Supply and demand, in economics, the relationship between the quantity of a commodity that producers wish to sell and the quantity that consumers wish to buy. Thank you for your feedback. Our editors will review what you've submitted and determine whether to revise the article.
Markets for labor have demand and supply curves, just like markets for goods. The law of demand applies in labor markets this way: A higher salary or wage—that is, a higher price in the labor market—leads to a decrease in the quantity of labor demanded by employers, while a lower salary or wage leads to an increase in the quantity of labor demanded.